Question

The University of Cincinnati Center for Business Analytics is an outreach center that collaborates with industry partners on applied research and continuing education in business analytics. One of the programs offered by the center is a quarterly Business Intelligence Symposium. Each symposium features three speakers on the real-world use of analytics. Each of the corporate members of the center (there are currently 10) receives twelve free seats to each symposium. Nonmembers wishing to attend must pay $75 per person. Each attendee receives breakfast, lunch, and free parking. The following are the costs incurred for putting on this event: Rental cost for the auditorium: $150 Registration Processing: $8.50 per person Speaker Costs: 3@ $800 $2,400 Continental Breakfast: $4.00 per person Lunch: $7.00 per person Parking: $5.00 per person (a) The Center for Business Analytics is considering a refund policy for no-shows. No refund would be given for members who do not attend, but for nonmembers who do not attend, 50% of the price will be refunded. Build a spreadsheet model in Excel that calculates a profit or loss based on the number of nonmember registrants. Extend the model you developed for the Business Intelligence Symposium to account for the fact that historically, 25% of members who registered do not show and 10% of registered nonmembers do not attend. The center pays the caterer for breakfast and lunch based on the number of registrants (not the number of attendees). However, the center only pays for parking for those who attend. What is the profit if each corporate member registers their full allotment of tickets and 127 nonmembers register? If required, round your answers to two decimal places. $ (b) Use a two-way data table to show how profit changes as a function of number of registered nonmembers and the no- show percentage of nonmembers. Vary number of nonmember registrants from 80 to 160 in increments of 5 and the percentage of nonmember no-shows from 10% to 30% in increments of 2%. In which interval of nonmember registrants does breakeven occur if the percentage of nonmember no-shows is 22%? Breakeven appears in the interval of to number of registered nonmembers.

Answer 1

Part A

Revenue per person	$75.00
Number of Registration of non members	127
Total Revenue R	$9,525.00
Variable Cost
Registration cost	$8.50
Continental breakfast	$4.00
Lunch	$7.00
Parking	$5.00
Total Variable cost per unit	$24.50
Total Variables cost A	$3,111.50
Number of non member which won't show up	12.7
Refund cost per user	$37.50
Total Refunds B	476.25
Fixed cost
Varibale expense of coporrate members	$24.50
Number of corporate members	50
Variable cost corporate members	$1,225.00
Rental Auditoriam	$150.00
Speakers	$2,400.00
Total Fixed cost C	$3,775.00
Number of corporate members that did't turned up	12.5
Number of non members that did't turned up	12.7
Total number that didn't turned up for event	25.2
Parking cost per unit	$5.00
Cost saving due to non attendees S	$126.00
Net Profit = R-A-B-C+S	$2,288.25

Part B

Units	Profit
80	-244.5
85	-27.75
90	189
95	405.75
100	622.5
105	839.25
110	1056
115	1272.75
120	1489.5
125	1706.25
130	1923
135	2139.75
140	2356.5
145	2573.25
150	2790
155	3006.75
160	3223.5

Since profit is zero between 85-90 so break even will be in the range 85-90

Please up vote. Thanks!